Whether a business takes stock or not is always a contentious subject. Accountants are always advising that you should take stock on a regular basis, how else can you calculate your profits.
We take a different view, firstly consider what the value of your stock holding is. In most case this is a nominal amount as most fresh produce is used as it is received. Equally how easy is it to monitor any stock movement particularly when you buy items in bulk and then break it down into smaller quantities.
Here, within KitMan, we take a different viewpoint. Certainly it is important to monitor the movement of stock to protect your business. However, most companies old a small amount of stock relative to their sales value which remains fairly static, apart from major functions.
We believe it is more effective to monitor the movement of the top 50 items. In this way you are controlling the movement of your major expenditure easily without expending a great deal of energy.
If you have any concerns with pilferage this will be quickly identified as the reports will highlight any shortages, and after all these are the same items that will be vulnerable.
Comparisons of the gross profit report on a daily basis will have already highlighted you to any concerns, which in turn points in the areas to examine.